Macy's (NYSE:M) has cut executive incentive bonuses to zero after the department store chain failed to hit revenue and expense goals.
Even CEO Terry Lundgren took a $1.1 million hit. According to a regulatory filing, Lundgren's pay dropped 8 percent from $12.7 million in 2014 to $11.6 million in 2015.
Macy's had a disappointing 2015 and has been reorganizing to get back on track.
In January, Macy's announced plans to close stores as part of cost-cutting measures. This includes consolidating flagships stores into fewer regions and districts with the subsequent adjustment of staff. In all, 3,000 positions will be eliminated and roughly 40 stores will be closed.
Macy's will refocus on opening smaller stores with an emphasis on value under the Macy's Backstage banner. The first Backstage opened in fall 2015 and 16 more units will be added this year.
Partnerships with other brands to open stores within Macy's stores is another focus, with shops from Best Buy and LensCrafters appearing with greater frequency inside flagship stores.